Cisco to layoff thousands of employees in a fresh round of job cuts: Report
Network leader Cisco is preparing to undergo a business restructuring aimed at emphasizing high-growth sectors. This strategic shift is expected to entail the layoff of around of thousands of employees, according to media reports.
As per information available on its website, Cisco, headquartered in San Jose, California, currently maintains a workforce totaling 84,900 employees as of fiscal year 2023.
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The company is currently in the process of determining the exact number of employees who will be affected by the impending layoffs, according to a source familiar with the matter.
An official announcement regarding the layoffs could be made as early as next week, coinciding with the company’s earnings call scheduled for Feb. 14.
In November 2022, during an earnings call, Cisco disclosed a restructuring initiative that impacted approximately 5% of its workforce, resulting in $600 million in severance and related charges. When approached for comment, Cisco declined.
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This move comes amidst a broader trend within the tech industry, with companies like telecom giants Nokia and Ericsson having trimmed thousands of jobs last year to reduce costs.
Several prominent tech firms, including Amazon, Alphabet, and Microsoft, have also recently announced layoffs.
Cisco’s decision follows a previous earnings call in which the company revised down its full-year revenue and profit forecasts, signaling a slowdown in demand for its networking equipment. This slowdown was attributed to a decrease in orders during the first quarter, with Cisco noting that “customers are currently focused on installing and implementing products in their environments.”
In recent years, Cisco has faced challenges related to supply chain disruptions and a post-pandemic deceleration in demand, prompting the company to accelerate its transition towards software offerings such as cybersecurity.
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Published: 11 Feb 2024, 10:16 AM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.